Asian Development Bank Annual Donor Consultation Meeting

Governance Cooperation Fund - Progress Report

12 March, 2012 (Monday) Manila

(Contact person: Surya P Shrestha)

Presentation Outline

ADBs Governance and Anti-Corruption Action Plan (GACAP II) and Refocused GCF RETA 6445 Extension of RETA 6445 Progress on RETA Outputs

GACAP II and Refocused GCF (1)

GACAP II approved in 2006: expand and mainstream governance in ADB operations

Risk based approach for improving management of governance risks at country, sector, project levels

GACAP II and Refocused GCF (2)

Operational focus on (i) risk assessments of PFM, procurement and anti-corruption systems; (ii) preparation of risk management plans (RAMPs) Since 2006, 22 country-level and 54 sector-level RAMPs

GACAP II and Refocused GCF (3)

GACAP II and Refocused GCF (RETA 6445)

2008: Revamped GCF to support GACAP II GCF implementation in RETA modality RETA 6445: Support for Implementation of GACAP II RETA Outcome: strengthened governance in DMCs in PFM; procurement; combating corruption

RETA 6445
RETA Outputs: 1. Preparation of RAMPS for projects in ADB priority sectors; 2. Subprojects addressing risk mitigation measures at country, sector or project levels 3. Subprojects addressing knowledge dissemination and monitoring 4. Provision of long tem national governance consultants to Resident Missions

Extension of RETA (1)

ADB: extension of completion date from 31 Jan 2012 to 31 Jan 2014 on 21 Oct 2011 Reasons: (i) delays in implementation of sub-projects; (ii) cost-savings in subprojects; (iii) demand for GCF funds from Regional Depts; and (iv) availability of funds in GCF

Extension of RETA (2)

GCF uncommitted balance transferred to RETA in October 2011: $391,000

Total RETA Budget: $2.991 million

GCF funds almost fully utilized

Output One: Progress (1)

Project level RAMPs in: Kyrgyzstan Transmission and Distribution Project (completed) Pakistan Punjab Cities Improvement Project (completed) Tajikistan Regional Transmission Project

(completed)

Output One: Progress (2)

Uzbekistan Water and Sanitation

(completed)

Kyrgyzstan Power Sector Rehabilitation Project (completed) In pipeline Pakistan: Renewable Energy Development Sector Investment Program; consultant recruitment started in February 2012

Output Two: Progress (2)

Subprojects completed: Mongolia Implementation of the Risk Management Plan in the Education Sector Peoples Republic of China Establishing Model Internal Control Systems for Wastewater and Rural Sector Projects

Output Two: Progress (2)

Subprojects on-going: Armenia Strengthening PFM Professionals Bhutan Governance Support Project Philippines Establishment of independent market operators in the electricity sector People's Republic of China: Establishment of the Jilin Province Urban Infrastructure Management Company Tajikistan: Support to Strengthening Internal Audit Capacity

Output Two: Progress (3)

Sub-projects in pipeline: Vietnam: Supporting Increased Competition in Public Procurement Cambodia: Strengthening FM and Procurement Capacity in Education Sector Philippines: Support for Implementation of Anticorruption Action Plan Mongolia: Strengthening Anticorruption Efforts in the Taxation Office

Output Four: Progress

NGCs working in Bangladesh and Nepal; contract extension by 12 months NGCs in Mongolia, Indonesia and Uzbekistan resigned in 2010 and 2011 New requests (i) Cambodia: government confirmed participation in RETA; (ii) Mongolia and CWRD developing ToRs

Programs for 2012-2014

Output 1: RAMP in Pakistan energy project Outputs 2: completion of 5 on-going; implementation of 4 new subprojects Output 4: in addition to NGCs in Nepal and Bangladesh, recruit 3 more Funds for new (above) initiatives from RETA uncommitted funds

ADBs Governance Stocktake and RETA 6455

2011 Stocktake and Review of ADBs Governance and PSM. Key conclusions: Risk-based approach of GACAP II important in operationalizing governance and anticorruption in ADB operations Implementation and monitoring of risk assessment and management plans to be further strengthened Important contribution of GCF and RETA 6445

Welcome comments and suggestions!! Thank You!!